Shares of GMR Power and Urban Infra hit the upper circuit limit of 20% at ₹34.10 apiece in early trade on Monday. This strong surge in shares came after the company, in an exchange filing on September 03, said that its subsidiary, GMR Smart Electricity Distribution Private Limited (GSEDPL), received the Letter of Award (‘LOA’) from Purvanchal Vidyut Vitran Nigam Limited to implement the smart metering project in the Purvanchal (Varanasi, Azamgarh zone, and Prayagraj, Mirzapur zone) area of Uttar Pradesh.
"GSEDPL will install, integrate, and maintain 50.17 lakh smart meters in the given area. We expect a similar LOA from Dakshinanchal Vidyut Vitran Nigam Limited to implement the smart metering project in the Dakshinanchal (Agra and Aligarh zone) area of 25.52 lakh smart meters, shortly."
"The implementation tenure is expected to be 27 months from the date of execution of the contract, with an operating period of 93 months. The total contract value (inclusive of GST) for Prayagraj and Mirzapur Zone is about ₹2,386.72 crore, and for Varanasi and Azamgarh Zone, it is about ₹2,736.65 crore," the company said in a regulatory filing.
The LOA has been issued in response to the e-tender floated by UP Discoms for different areas of Uttar Pradesh. GSEDPL participated in the e-tender and emerged as a winner. The project will span over a period of 10 years, according to the company.
This Advanced Metering Infrastructure (AMI) Project shall include supply, installation, integration, commissioning, and operation and maintenance of smart metres on a DBFOOT basis, backed by state-of-the-art technology and software solutions for end-to-end automated system management, the company added.
GMR Power and Urban Infra Limited (GPUIL), a subsidiary of GEPL, holds expertise in the sectors of energy, urban infrastructure, and transportation. The shares zoomed 72.66% in the last one month and gained nearly 102% in the last three-month period.
For the June quarter, the company reported a net loss of ₹218 crore. The total revenue during the quarter came in at ₹1,124 crore, an improvement of 5.1% YoY.
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